Penske Automotive Group, Inc. (NYSE:PAG) shares are trading lower after the company reported worse-than-expected third-quarter financial results.
The company reported earnings per share of $3.39, missing the street view of $3.42. Quarterly sales of $7.59 billion (+2%) missed the analyst consensus of $7.67 billion.
The company reported quarterly retail automotive service and parts revenue of $778.0 million, marking a 14% growth. Additionally, same-store retail automotive service and parts revenue rose by 7%, while related gross profit increased by 6%.
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"New and used retail automotive gross profit per unit remained strong, retail automotive service and parts performed at record levels, the retail commercial truck business performed well, selling, general, and administrative expenses remained well controlled, and the equity income from Penske Transportation Solutions increased 14% sequentially despite continued freight challenges," said Chair and CEO Roger Penske.
As of September 30, Premier Truck Group operated 46 North American retail commercial truck locations. For the three months ended September 30, retail unit sales increased 14% to 6,331.
Penske Automotive exited the quarter with cash and equivalents worth $91.9 million and inventories worth $4.822 billion. The company's long-term debt as of quarter end totaled $1.132 billion.
Price Action: PAG shares are trading lower by 1.92% to $152.65 at last check Tuesday.
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